FDD Analysis 2025 FDD

Big O Tires Franchise Disclosure Document (FDD): Key Facts & Financials

The Franchise Disclosure Document (FDD) is a legal document that franchisors must provide to prospective franchisees at least 14 days before any agreement is signed or money changes hands.

This page summarizes the key facts and financials from Big O Tires's FDD, including franchise costs (Item 7), ongoing fees (Item 6), financial performance data (Item 19), and unit growth trends (Item 20).

What the Big O Tires FDD Covers

Required disclosure items from the franchisor

Franchisor Background

Items 1-4: Company history, litigation, bankruptcy

Fees & Costs

Items 5-7: Initial fees, ongoing fees, total investment

Obligations & Restrictions

Items 8-16: Purchasing, territory, trademarks

Financial Performance

Item 19: Revenue data provided

Franchise Costs (Item 7 Summary)

Initial investment required to open a franchise

Total Initial Investment$511,500 - $1,882,500
Franchise Fee$10,000

Investment Breakdown

Initial Franchise Fee/Minimum Deposit (See Note 1)$10,000 - $17,500
Initial Training-Fees, Travel & Lodging Expenses (See Note 2)$1,000 - $9,000
Real Estate Leases (Three Months’ Rent Plus Security Deposit) (See Note 3)$40,000 - $160,000
Equipment, fixtures and other fixed assets (See Note 4)$250,000 - $395,000
Construction, Remodeling, Leasehold Improvements and Decorating Costs (See Note 5)$25,000 - $750,000

+ 5 more categories

Ongoing Fees (Item 6 Summary)

Recurring fees paid to the franchisor

Royalty Fee—
Marketing/Advertising Fee4.9% of gross sales

Other Ongoing Fees

National Auto Service Warranty and Roadside Assistance PlanVaries
Pro-Tec+ Service Contract Administration Fee (TPP Fee) and Consumer Liability Insurance Policy Fee (CLIP Fee)Varies
Point of Purchase PackagesVaries
Market Reservation FeeVaries
Retail Accounting Centers (“RAC”)Varies

Item 19 Financial Performance

Revenue and financial data (if disclosed)

Median Revenue$2,824,713/year
Disclosure Year2025
Reporting Units—
Revenue VarianceHigh variance (wide performance range)

Unit Growth & Franchisee Behavior (Item 20)

Franchise system size and trends

461

Total Units

-1

Net Growth (YoY)

-0.2%

Growth Rate

Franchised Units461
Company-Owned Units—

What the FDD Doesn't Make Obvious

Key considerations beyond the disclosure

Legal History

This FDD discloses litigation history. Review Item 3 carefully to understand the nature and outcome of any legal proceedings.

Real Estate & Location

FDDs often understate the challenge of finding suitable real estate. Site selection, lease negotiation, and buildout timelines can significantly impact your total investment and time to open.

Working Capital Needs

Initial investment ranges often assume a best-case scenario. Many franchisees need additional working capital during the ramp-up period, especially in the first 6-12 months of operation.

Related Resources

Big O Tires Overview

Full franchise profile and details

Is Big O Tires Worth It?

Investment analysis and evaluation

Automotive Services Revenue Rankings

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All Automotive Services Franchises

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